Catastrophic Health Insurance Takes up the Slack

Many Americans live day to day without health insurance. And while the cost of routine medical care won't ruin most of us financially, the expense of a catastrophic illness certainly could.

If you're looking for low insurance premiums but want coverage that picks up the slack when it comes to major medical concerns, a catastrophic health insurance policy might be just what you need. Read on for more information about this cost-saving health insurance strategy.

Take Charge of Your Health

Also known as "high deductible" or "major medical" insurance, this type of plan is designed to protect you from ruinous medical costs while encouraging you to shop wisely for routine health care.

Here's how it works:

You choose a higher-than-normal deductible, usually between $250 and $2,000, depending on your insurer. (The deductible is what you pay out of pocket before your insurer starts paying.)

You agree to cover your own medical costs up to that deductible amount.

Once you spend up to your deductible, your insurance company covers 100 percent of your medical costs (with certain restrictions).

As you can see, this coverage leaves the choice in your hands. You make the choices that fit you and/or your family best; your insurance company rewards you for taking on a measure of additional financial risk.

It's just that simple!

A Money-Saving Choice

Choosing this health plan can drop your premiums significantly.

How? By agreeing to cover the expense of your own routine health care costs, like doctor visits, medications and such, you lessen the financial impact to your insurer—and that, in turn, lowers the cost of your health care.

Meanwhile, you're empowered to live a healthy life, take care of yourself and seek treatment only when necessary, cutting avoidable expenses from your budget…and who among us can't afford to do a little more of that?

Serious Coverage

So what is covered under a catastrophic policy?

Depending on the policy you choose, medical procedures that can help diagnose, avoid or eliminate catastrophic illness are generally covered. This includes medical processes such as x-rays, hospital visits, lab tests, surgery and intensive-care stays, to name just a few.

And what isn't covered? Usually, more routine events such as doctor visits, medications, prenatal care and some pre-existing conditions are excluded.

Keep in mind there are always exceptions. So if your employer doesn't offer health insurance coverage or you don't want to pay for health coverage you really don't need, speak with a qualified health insurance agent on the InsureMe network. There are many high-deductible plans to choose from—and it certainly never hurts to know your options!

Shopping Tips for the Novice

Before you buy a major medical plan like this, reflect on these questions—while comparing policies—to help you decide if this type of protection is well-suited to your and/or your family's needs:

How much is the deductible?

How much are the premiums (payable monthly, quarterly or yearly)?

Are these calculations in line with my/my family's budget?

How much coverage do I/we really need?

Can I/we afford to cover my/our own doctors' visits and prescriptions?

Do I/we have any preexisting conditions requiring frequent medical visits or treatments?

Am I/are we a generally healthy individual/family?

What is the lifetime annual benefit (the yearly limit your insurer will cover)? Will this meet my/our needs?